Trump also wants another $2.5 billion in funds, which were already given to the state, returned. Gov. Gavin Newsom has already refused that request.

By NTK Staff | 02.20.2019 @12:30pm

Gov. Gavin Newsom (D-CA) and President Donald Trump are locked in a battle over federal funds allocated to California for a $77 billion high-speed rail project that Newsom announced he killed last week.

According to reports, the feds allocated $3.5 billion for the high-speed rail project that was supposed to connect Los Angeles with San Francisco. Newsom said the project “would cost too much and, respectfully, take too long.” The estimated completion date was the year 2033.

On Tuesday, the U.S. Transportation Department announced it intended to cancel $929 million in federal grants slated to go to California for high-speed rail. Axiosreported that the administration is also “actively exploring every legal option” to take back the $2.5 billion already given to the state for the project.

Newsom said the state may still build a system connecting Bakersfield and Merced, two towns on the northern and southern sides of L.A. and S.F., respectively. It’s likely he’s using that justification for keeping the federal money:

Last week, California’s newly elected Gov. Gavin Newsom disputed Trump’s claim that California owes the federal government $3.5 billion for scaling back its plans to build an estimated $77 billion high-speed train from San Francisco to Los Angeles, saying the money was allocated by Congress. In a new statement, Newsom said: “This is clear political retribution by President Trump, and we won’t sit idly by. This is California’s money, and we are going to fight for it.”

There is no love lost between Trump and Newsom or the state of California, for that matter. With little to lose, expect the administration to do everything in its power to continue waging this war with the Golden State.

Trump tweeted about the issue Wednesday morning:

California now wants to scale back their already failed “fast train” project by substantially shortening the distance so that it no longer goes from L.A. to San Francisco. A different deal and record cost overruns. Send the Federal Government back the Billions of Dollars WASTED!